Help Your Child Achieve Financial Freedom and Live Debt Free

A
lot of children and young adults indulge in taking personal loans and home
mortgage loans. In this competitive world every young child needs to have
lessons regarding personal budgeting so that they can manage their budget without
facing any difficulty. They get to know about this by watching and listening to
people around them like parents, friends, relatives etc.

At
the age of 3 children observe that their caretakers are trying to tell the reasons
to creditors for not paying the amount this month and these conversations form
perceptions. At the age of 10 a child is capable of taking decisions on the
basis of perceptions he forms when he was younger. Later on, as he or she
becomes older and starts taking decisions, he is likely to emulate what he saw.
So you need to give lessons to your child related to personal budgeting skills
and facilitate financial freedom in their life.

Consider your
purchases:

These
lessons can be incorporated through your Saturday activity or home school
program. It can be made possible by sitting together with your child and working
out a plan. These lessons can be taught by representing the concept through
actions and daily practice.

If
the child is old enough, the family needs to discover the items which are
considered to be the next purchase such as, a television, a refrigerator, a
bike, a washing machine, a house and so on. If the child is very young, he or
she needs to choose items such as toys, pencils, a cycle etc. The child should
be given a notebook only for financial management projects. He or she should
then write down the plan. The next step should be to discuss among your family
members, how the child will save money for the purchase and decide where the
money will come from. It should come from the grocery money, entertainment
budget and other such allocated amount. Also talk about the problem being faced
by removal of funds from each budget.

You
need to find the total cost of that item and how much time it would take to
save money from different budgets. You need to list at least one characteristic
of the item you are willing to buy. If it is an appliance, talk about
characteristics you require and tick the ones which are elective. If the item
is a toy, the child should tell you the color he wants, how he will play with
that toy and what the toy will do. Then write down a plan to decide which style
of the item will best suit your family. Check the place you will explore to find
your style of the item. Weigh your options of purchase such as a catalog in a
store, television, in a sales paper or on the internet.

In
the end, talk about the necessity of the item also and decide whether it should
be purchased right now. If so, how it will affect your other budgets? While
answering these questions, the child should identify the actual need for the item.
This will help him to differentiate things that are necessary from things that
can wait for a while.

Financial freedom from debt:

The
initial stage of this lesson plan will help your child learn vital aspects in
order to negotiate personal debt and home mortgage loans. It will also help
reduce home mortgages and make strong financial decisions in future.